Shares of Alcatel-Lucent (NYSE:ALU) Shoot Up on Strong Guidance

Alcatel-Lucent (NYSE:ALU) soared today on a solid quarter and strong guidance.

Profit in the fourth quarter surged on an increased demand for broadband networks, said the company in its earnings report.

Earnings in quarter rose to 340 million euros ($464 million), or 13 European cents a share, from €46 million, or 2 cents a share, in the same quarter last year.

Strong demand in North American, Brazil and Mexico helped drive revenue to a €4.86 billion, or 23 percent gain. Analysts were looking for €347 million.

Chief Executive Ben Verwaayen said, “As we enter into 2011, I am more confident than ever in our ability to transform into a normal company.”

Also moving the share price was the margin guidance, which the company says is expected to reach more than 5 percent.

CFO Paul Tufano says “positive macro-trends” will help the performance of the company remain sustainable, and sees it continuing on through 2011 and beyond.

Alcatel-Lucent was trading at $4.34, up $0.78, or 21.91 percent, as of 1:17 PM EST.